Sterling Resources announces $30 million financing

Calgary, Alberta, Canada, Jul 22, 2010 – Sterling Resources Ltd., (TSX-V:SLG) (“Sterling” or the “Company”) is pleased to announce that it has entered into a bought deal financing agreement with a syndicate of underwriters led by Wellington West Capital Markets Inc.(the "Underwriters") to issue 15,790,000 common shares (the “Common Shares”) at a price of $1.90 per Share (the “Offering Price”) for gross proceeds of $30,001,000 (the “Offering”).

The Underwriters will be entitled to an over-allotment option (the “Over-allotment Option”) to purchase up to a further 2,368,500 Common Shares at the Offering Price. The Over-allotment Option will be exercisable in whole or in part, at the sole discretion of the Underwriters, until 30 days following the closing of the Offering. If the Over-allotment Option is exercised in full, the gross proceeds raised pursuant to the Offering will be $34,501,150.

The net proceeds of this issue will be used towards the required equity component of the financing of the Breagh project in the United Kingdom North Sea, for which Sterling recently announced an offer of up to £100 million of project financing from the Royal Bank of Scotland (RBS).

The Offering is subject to certain conditions including normal regulatory approval, including approval of the TSX Venture Exchange. The Common Shares will be offered by way of a short form prospectus in all of the provinces of Canada (excluding Quebec) and on a private placement basis elsewhere including the United Kingdom and Europe. Closing is anticipated to occur on or about August 12, 2010.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. The Common Shares will not and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration of an applicable exemption from the registration requirements.

Sterling Resources Ltd. is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania, and France. The shares are listed and posted for trading on the TSX Venture Exchange under the symbol “SLG”.

Forward-Looking Statements

All statements included in this press release that address activities, events or developments that Sterling expects, believes or anticipates will or may occur in the future are forward-looking statements. In addition, statements relating to reserves or resources are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves and resources described can be profitably produced in the future.

These forward-looking statements involve numerous assumptions made by Sterling based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other-forward looking statements will prove inaccurate, certain of which are beyond Sterling's control, including: the impact of general economic conditions in the areas in which Sterling operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations. Readers should also carefully consider the matters discussed under the heading “Risk Factors” in the Company’s Annual Information Form.

Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Sterling's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. These statements speak only as of the date of the press release. Sterling does not intend and does not assume any obligation to update these forward-looking statements except as required by law.

Financial outlook information contained in this press release about prospective results of operations, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management’s assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this press release should not be used for purpose other than for which it is disclosed herein.

For further information:

Mike Azancot - President and Chief Executive Officer
Phone: (44) 77404-32883, Fax: (44) 13308-20670
mike.azancot@sterling-resources.co.uk

Ian Hornby-Smith - Chief Financial Officer
Phone: (403) 215-9264, Fax: (403) 215-9279
ian@sterling-resources.com

George Kesteven - Manager, Corporate and Investor Relations
Phone: (403) 215-9265, Fax: (403) 215-9279
george@sterling-resources.com